Re: Fed up of dithering!

I am in a similar situation to phil0080 with around £8k on 0% cards. I am considering a loan (6% over 5 years £144 a month) which could could clear it all. Assuming I was disciplined then and didn't use the credit cards I know I would be clear in 5 years. Transferring the balances adds up overtime and I don't seem to be getting the debt total down.
It would be £1100 in interest but I have been transferring balances for a few years now so have already spent a few hundred on that.

Re: Fed up of dithering!

I can say without doubt I would not want another credit card
again. At the moment I'm paying minimum payments on all three credit cards and the one with the highest apr is the virgin credit card where I'm paying alot more then 19.9 apr on interest.( I will confirm apr in full for each card tomorrow)

I have had them for a number of years and want to try and get a grip of my debts.

My thoughts behind the loan were that I can have a clear goal that in 5 years I will be debt free and consolidating the loan would help with the mind over matter side of things knowing that three debts have become one.

It makes me feel a bit sick that there are 6-7% apr loans on the high street but if I'm refused one my credit score will be damaged which would leave me back to square one and it's a bit of a gamble

Re: Fed up of dithering!

What are the APRs for you current credit cards ? If they aren't significantly higher than 19.9% then I'd suggest you might be better paying as much as you can to the one with the highest APR and the minimum to the others and then reduce the credit limit on the one you are paying off so your available credit comes down and you can then think about getting a 0% card in 6 months or a year when you've started to make inroads into them.

Doing it that way also gives you the flexibility to pay a bit extra when you've got the cash - bonus, payrises, christmas presents, last two months when there is no council tax etc. Make sure you've cut back on uneccesary expenditure as well - limit the takeaways and meals out, make your own lunch rather than buy sandwiches, don't buy coffee from starbucks etc - and you'll find your debt free day comes closer.

The danger with loans is that it is very easy to start using the credit cards again and ending up in double the debt. If you've had at least 6 months without adding to the credit card debt and are prepared to cancel them all if you got a loan (maybe keep one for work expenses that is paid in full each month) then the loan may be the better option but that indicative APR looks high.

Fed up of dithering!

I like many I'm sure had access to credit cards when I was younger and I'm fed of of paying the minimum and finally want to try and clear me of what feels a constant shackle upon my shoulders!

I have one credit car through Tesco with £2000, one with virgin at £2500 and one with barclaycard at £1000.

I have an overdraft but don't go into to it, I have no late payments or CCJ's and my credit score is showing as excellent.

I had a plan to either get a loan and consolidate my Debts or try and balance
Transfer one card at a time and pay that off with a 0% transfer deal.

However having three credit cards means its impossible to get another, none of the cards are maxed out but I am paying hefty interest on them.

My bank, Barclays, have pre-approved loan offers but even a £6000 loan is offered to me at 19.9% apr and to make that comfortable for me that would need to be offer 4 or 5 years.

I am conscious of keeping my credit score good in such hard times and don't fancy applying for high street loans and getting turned down, purely because of these multiple credit cards, the same credit cards I'm looking to consolidate.

Does anyone have any advice or help for me please.

Should I take a higher apr pre approved loan knowing that in 5 years
I'll be debt free? I can only realistically pay £200 off my debts a month

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